LM Funding America, Inc. Announces Stalking Horse Bid to Purchase the Assets of Symbiont.io, Inc. Out of Chapter 11 Bankruptcy
Secured Lender Position Creates Opportunity to Potentially Acquire Financial Services Enterprise Blockchain Platform
TAMPA, Fla., May 23, 2023 /PRNewswire/ — LM Funding America, Inc. (NASDAQ: LMFA) (“LM Funding” or the “Company”), a cryptocurrency mining and technology-based specialty finance company, today announced that its $2.6 million “stalking horse” bid to purchase the assets of Symbiont.io, Inc. (“Symbiont”), which is currently in Chapter 11 bankruptcy proceedings, is unopposed and expected to be approved by the bankruptcy court, and an auction that could include other bids is anticipated to take place on May 26, 2023. LM Funding is currently the sole secured creditor for Symbiont as a result of a $2 million secured loan it made to Symbiont in December 2021.
Bruce M. Rodgers, Chairman, and CEO of LM Funding commented, “We are making a stalking horse bid to purchase the assets of Symbiont, including those related to its Assembly™ financial services blockchain enterprise platform. If we successfully acquire the assets, we intend to pursue joint ventures and/or other strategic relationships to offer Assembly to institutions to issue, track and manage financial instruments, such as data, loans, and securities. We also plan to investigate and consider other use cases for the Symbiont assets and Assembly platform.”
Symbiont filed for Chapter 11 bankruptcy protection on Dec. 1, 2022. The New York-based company said its assets and liabilities both ranged between $1 million and $10 million, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York. LM Funding is listed as a secured creditor and is owed $2 million plus interest and expenses.
Symbiont was formed in 2013 to help financial institutions leverage the Bitcoin blockchain to reduce risk, save costs, and increase efficiencies. Symbiont reported partnerships with large institutions, including index-fund giant Vanguard and State Street, who used Symbiont’s platform for a foreign exchange forward contract. SWIFT, which helps banks move money across borders, has said it was using Symbiont’s technology.
Stated Rodgers, “We hope to acquire Symbiont’s assets and build organizations around those assets to grow value for our shareholders.”
About LM Funding America
LM Funding America, Inc., (Nasdaq: LMFA) together with its subsidiaries, is a cryptocurrency mining business that commenced Bitcoin mining operations in September 2022. The Company also operates a technology-based specialty finance company that provides funding to nonprofit community associations (Associations) located in the state of Florida by funding a certain portion of the Associations’ rights to delinquent accounts that are selected by the Associations arising from unpaid Association assessments.
Forward-Looking Statements
This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guaranties of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the company’s most recent Annual Report on Form 10-K and its other filings with the SEC, which are available at www.sec.gov. These risks and uncertainties include, without limitation, uncertainty created by the COVID-19 pandemic, the risk of not successfully acquiring the Symbiont assets and the risk of not successfully commercializing or realizing value from those assets, if acquired. the risks of operating in the cryptocurrency mining business, the capacity of our bitcoin mining machines and our related ability to purchase power at reasonable prices, and the ability to finance our planned cryptocurrency mining operations. The occurrence of any of these risks and uncertainties could have a material adverse effect on our business, financial condition, and results of operations.
Contact:
Crescendo Communications, LLC
Tel: (212) 671-1021
Email: LMFA@crescendo-ir.com
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SOURCE LM Funding America
